EUR/USD makes fresh daily lows

By FXstreet.com | August 28, 2014 AAA

FXStreet (Córdoba) - The EUR/USD moved a step lower and printed fresh daily lows early New York session, weighed by renewed geopolitical tensions and solid US data.

While US GDP and jobless claims beat expectations, recent data showed pending home sales rose 3.3% in July versus a 0.5% gain expected. However, USD reaction has been subdued as investors' attention turns to tomorrow’s Eurozone inflation figures as according to sources, it could prompt the ECB to announce easing measures next week should they point to growing deflation pressures.

At time of writing, the EUR/USD is trading at 1.3168, recording a 0.18% loss on the day, having been rejected by the 1.3220 zone.

EUR/USD technical outlook

Valeria Bednarik, chief analyst at FXStreet notes that the EUR/USD shows increasing bearish potential. “A break below 1.3150 should see the pair extending its decline towards the 1.3100 price zone, albeit market is expected to remain on hold, ahead of tomorrow EZ inflation data, and next week Central Bank meeting”, said Bednarik.

The analyst locates immediate support levels at 1.3150, 1.3120 and 1.3090, while she sees resistances at 1.3215, 1.3240 and 1.3280.

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